Tejas Networks Ltd (TEJASNET) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

HFCL

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Sterlite Tech.

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Vindhya Telelink

Optiemus Infra

Suyog Telematics

GTL Infra.

ITI

Tejas Networks

Pace Digitek

Why is Tejas Networks Ltd ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -10.83
The company has been able to generate a Return on Equity (avg) of 2.72% signifying low profitability per unit of shareholders funds

The company has declared negative results for the last 4 consecutive quarters

NET SALES(Q) At Rs 332.69 cr has Fallen at -82.55%
PBT LESS OI(Q) At Rs -291.08 cr has Fallen at -447.86%
PAT(Q) At Rs -211.34 cr has Fallen at -194.3%

Risky - Negative EBITDA

The company has recorded a negative EBITDA of Rs. -681.83 cr
Over the past year, while the stock has generated a return of -40.96%, its profits have fallen by -303.6%
The stock is trading risky as compared to its average historical valuations

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -1.09% over the previous quarter and collectively hold 9.61% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.53% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -40.96% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Tejas Networks for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tejas Networks

-40.96%

-0.81

50.74%

Sensex

-4.15%

-0.31

13.40%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.94%

EBIT Growth (5y)

-479.38%

EBIT to Interest (avg)

-10.83

Debt to EBITDA (avg)

7.29

Net Debt to Equity (avg)

1.25

Sales to Capital Employed (avg)

0.50

Tax Ratio

32.87%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

9.61%

ROCE (avg)

-3.25%

ROE (avg)

2.72%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.52

EV to EBIT

-10.21

EV to EBITDA

-16.24

EV to Capital Employed

1.68

EV to Sales

10.04

PEG Ratio

Dividend Yield

0.60%

ROCE (Latest)

-16.42%

ROE (Latest)

-31.01%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-31What is not working for the Company

NET SALES(Q)

At Rs 332.69 cr has Fallen at -82.55%

PBT LESS OI(Q)

At Rs -291.08 cr has Fallen at -447.86%

PAT(Q)

At Rs -211.34 cr has Fallen at -194.3%

ROCE(HY)

Lowest at -14.79%

DEBT-EQUITY RATIO(HY)

Highest at 1.43 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.34 times

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Here's what is not working for Tejas Networks

Net Sales - Quarterly

At Rs 332.69 cr has Fallen at -82.55%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -291.08 cr has Fallen at -447.86%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -211.34 cr has Fallen at -194.3%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 1.43 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Lowest at 0.34 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 10.28 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income